by decent11 » Thu Mar 18, 2010 09:02 am
I am having a serious problem with My former insurance company Encompass! I live in MA.I had insurance with Encompass for 1 year prior to trouble!
I had full coverage which cost about $3200, half way through the term I was having trouble, I was making the payments but was left with no money for the rest of the month, so I had my agent change my policy to just basic coverage. Which was around $2400 a year.
I had to pay a premium of $340 to change to basic coverage, at the time, I had just got my taxes back so I gave them $600. My next payment was for $214.46.
Around this time my parents switched both there home owners and car insurance from the agents business I was using for my insurance.
My next payment went up to $324.61, I paid it and then the next month I get a bill for $624.24, I immediately contacted my agent and asked what was going on, She didn't really give a good answer and gave me the run around for days. (Note I have never got a ticket nor have I been in an accident.)
My sister insurance payment also went from $250 to almost $700 for no reason, and after that payment they wanted the rest of the insurance paid in full or they were going to cancel it.
So I started looking for new insurance and ended up switching to the same company my parents did, at only $1700 for the year, It was set up to change on 10/26/09. They also notified encompass and the RMV of the switch and to cancel the policy, I also contact my agent and told her to cancel the policy. (She hung up on Me)
The policy ran from 04/23/09 - 10/26/09 before I cancelled it, I switched from full coverage to basic on 06/19/09. I paid every bill I got from encompass except the last one because it was and outrageous amount 3 times the amount I was told my monthly payments would be.
The last payment I made was on 09/24/09 for $324.61 and notified Encompass of cancellation for 10/26/09 so my policy would not lapse.
I have been paying my new insurance for almost 6 months now without any communications from Encompass or any notice of owing them money.
03/13/10 about 6 moths later, I received a bill for $595 from Encompass and a notice saying I had 15 days before the bill would be put into collections, it also said that the RMV has been contacted and that my registration will be revoked and any new insurance plan will be canceled if I do not send them the full balance.
I contacted encompass directly through the email address they provided on the notice they sent me.
They contacted me back, that I owed a total of $595.52. Of which $252 was for a prior term 03/17/09, but the problem is my policy renewed in 04/23/09 and the previous term was paid for in full before the next was renewed.
It also said I had incurred 3 - $25 cancellation fees and 4 - $6 fee's a total of $99. Again I have not received anything in the mail from Encompass for about 6 months since I switched insurance.
Adding up the totals $252 + $99 only gets to $351 but they want $595.52 a difference of $244.52.
I just received a notice in my mail box 03/16/10 (Hand Delivered) from my new insurance, I've been paying for 6 months, saying that as of April 4 2010 my policy is hereby cancelled.
Reasons
Ineligible Risk: Requirement for payment of premium in full for policies where the applicant has cancelled for non-payment in the previous 24 months not met.
Ineligible Risk: Requirement of unpaid earned premium for any operator being satisfied prior to binding of the policy not meet
_________________________________________
I do not know what to do or if what Encompass is doing is legal, Should I just pay Encompass the $595 and get rid of them before I lose my new coverage because of them.
How can I be charged for a prior term, that was paid in full before the new one was renewed?
Can My new Insurance Cancel me If I do not pay Encompass?
Thank You for any Help, I am so Stress Right Now it's not even funny. Sorry This is so long. :(.
Anthony
I had full coverage which cost about $3200, half way through the term I was having trouble, I was making the payments but was left with no money for the rest of the month, so I had my agent change my policy to just basic coverage. Which was around $2400 a year.
I had to pay a premium of $340 to change to basic coverage, at the time, I had just got my taxes back so I gave them $600. My next payment was for $214.46.
Around this time my parents switched both there home owners and car insurance from the agents business I was using for my insurance.
My next payment went up to $324.61, I paid it and then the next month I get a bill for $624.24, I immediately contacted my agent and asked what was going on, She didn't really give a good answer and gave me the run around for days. (Note I have never got a ticket nor have I been in an accident.)
My sister insurance payment also went from $250 to almost $700 for no reason, and after that payment they wanted the rest of the insurance paid in full or they were going to cancel it.
So I started looking for new insurance and ended up switching to the same company my parents did, at only $1700 for the year, It was set up to change on 10/26/09. They also notified encompass and the RMV of the switch and to cancel the policy, I also contact my agent and told her to cancel the policy. (She hung up on Me)
The policy ran from 04/23/09 - 10/26/09 before I cancelled it, I switched from full coverage to basic on 06/19/09. I paid every bill I got from encompass except the last one because it was and outrageous amount 3 times the amount I was told my monthly payments would be.
The last payment I made was on 09/24/09 for $324.61 and notified Encompass of cancellation for 10/26/09 so my policy would not lapse.
I have been paying my new insurance for almost 6 months now without any communications from Encompass or any notice of owing them money.
03/13/10 about 6 moths later, I received a bill for $595 from Encompass and a notice saying I had 15 days before the bill would be put into collections, it also said that the RMV has been contacted and that my registration will be revoked and any new insurance plan will be canceled if I do not send them the full balance.
I contacted encompass directly through the email address they provided on the notice they sent me.
They contacted me back, that I owed a total of $595.52. Of which $252 was for a prior term 03/17/09, but the problem is my policy renewed in 04/23/09 and the previous term was paid for in full before the next was renewed.
It also said I had incurred 3 - $25 cancellation fees and 4 - $6 fee's a total of $99. Again I have not received anything in the mail from Encompass for about 6 months since I switched insurance.
Adding up the totals $252 + $99 only gets to $351 but they want $595.52 a difference of $244.52.
I just received a notice in my mail box 03/16/10 (Hand Delivered) from my new insurance, I've been paying for 6 months, saying that as of April 4 2010 my policy is hereby cancelled.
Reasons
Ineligible Risk: Requirement for payment of premium in full for policies where the applicant has cancelled for non-payment in the previous 24 months not met.
Ineligible Risk: Requirement of unpaid earned premium for any operator being satisfied prior to binding of the policy not meet
_________________________________________
I do not know what to do or if what Encompass is doing is legal, Should I just pay Encompass the $595 and get rid of them before I lose my new coverage because of them.
How can I be charged for a prior term, that was paid in full before the new one was renewed?
Can My new Insurance Cancel me If I do not pay Encompass?
Thank You for any Help, I am so Stress Right Now it's not even funny. Sorry This is so long. :(.
Anthony
Posted: Thu Mar 18, 2010 11:41 am Post Subject:
Anthony, I certainly understand your stress...I'm going to send Ins. Teacher a link to this thread to see if he can shed some light on this...in the mean while, If I were you I would contact your state's dept of insurance immediately and see if they can help with an explaination...hang tight.
Posted: Fri Mar 19, 2010 05:15 am Post Subject:
Wow...I got dizzy just trying to figure out what the heck went on there. Whew. I'm still not sure of a lot of things, but a couple of areas got my interest:
Ineligible Risk: Requirement for payment of premium in full for policies where the applicant has cancelled for non-payment in the previous 24 months not met.
This statement means that one of the reasons they're canceling the policy is that according to their information, you had been canceled for not paying your premium sometime within the last 24 months. The insurer requires that if this has happened to you, you must pay your premium in full for the term.
Ineligible Risk: Requirement of unpaid earned premium for any operator being satisfied prior to binding of the policy not meet
The insurer's information shows that you still owe premium for coverage provided under another policy.
Obviously your prior insurance company is saying, as you figured out, that you still owe them money.
Around this time my parents switched both there home owners and car insurance from the agents business I was using for my insurance.
I'm not sure what this means and how it's relevant. Were you part of their policy or did you have your own? If you were on their policy, did they take you along with them when they switched? If you weren't on their policy, it's irrelevant.
I also can't figure out exactly how long you were insured with the prior carrier, Encompass. I believe you had an annual policy term as you were quoting one-year premium costs.
SO....OP..... :?: :?:
Let us know a few things...
1. How much, in total, have you paid Encompass and exactly how long were you insured with them?
2. Was there actually a lapse in your coverage? It doesn't matter if you were aware of it or not... was there?
3. When did your coverage with the new company begin?
InsTeacher 8)
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